Didn’t the UK say it had no money ???

The UK tax authority has received a major £1.7 billion funding boost over four years to recruit thousands of extra compliance, investigation, and debt-management staff. This funding is part of a broader government drive to close the £46.8 billion “tax gap”—tax owed but not collected.

What this means for TAXPAYERS:

• Expect more WDF forms, VAT-compliance checks, and investigations into mistakes or hidden income, especially offshore earnings
• HMRC has doubled its wealthy-person investigations, raising over £1.5 billion from high earners in 2023-24. The possibility of checking on high-net worth, which HMRC targets to generate revenue, should expect more stringent and strict test of their income, local and overseas. (The definition of high net worth is actually not very high. A post on high net worth was shared before — please refer to it.)
• Over 5,500 compliance officers and 2,400 debt-collection staff are being added, backed by better AI and Connect software to analyze taxpayer data

Given the current tight government spending, it's easy to see that identifying and recovering tax evasion is likely to generate more revenue for the government than it costs to pursue.

Why this matters to NEW TAXPAYERS in the UK?

I don’t fully understand UK tax law, is it an excuse? No, it is not.

In the UK’s self-assessment system, you are legally responsible for reporting all your taxable income correctly—including from abroad. HMRC will no longer accept “I didn’t know” as an excuse. With more resources, they will pursue errors and omissions quickly and rigorously.

Generally speaking, some new immigrants may have overseas income, and some may be very wealthy. Combined with differences in tax systems, this can unintentionally lead to errors in UK tax reporting. These are ideal targets for HMRC’s enhanced compliance checks to increase and recover tax revenues.

What taxpayers should do now?

1. Ensure all income, including overseas earnings, is fully disclosed.
2. Keep detailed, compliant records—especially bank statements, investment records, and VAT invoices.
3. Review your annual accounting setup and tax advice.
4. If you're unsure whether all your sources of income are reported correctly, seek professional help.

Simply put: HMRC has the money and manpower to find mistakes or hidden income—and that risk is rising. Being proactive and compliant is the only safe path forward.

If you’d like support reviewing your records or simply want a second opinion, feel free to contact Elaga Accountancy. Our experienced team is friendly, knowledgeable, and well-versed in all aspects of UK tax. As the saying goes, you can only act on what you know — and when it comes to tax, knowing is everything. If you have questions about your tax filing, speak to your accountant. It's the first step to understanding your UK tax responsibilities and ensuring your tax is reported correctly.

***Contact us to learn more.

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